Office of Public Sector Information
Statutory Instruments
Banks And Banking
Made
6th July 2009
Coming into force
7th July 2009
The Treasury make this Order in exercise of the powers conferred by sections 49, 50, 52, 54, 57 to 59, 61 and 259 of the Banking Act 2009(1) and in accordance with regulation 3 of the Banking Act 2009 (Third Party Compensation Arrangements for Partial Property Transfers) Regulations 2009(2).
A draft of this Order has been laid before and approved by a resolution of each House of Parliament in accordance with section 62(2) of that Act.
1. This Order may be cited as the Dunfermline Building Society Compensation Scheme, Resolution Fund and Third Party Compensation Order 2009 and shall come into force on the day after the day on which it is made.
2. In this Order—
“Account Holder” has the meaning given in paragraph 1(2) of Schedule 1;
“the Act” means the Banking Act 2009;
“Bridge Bank” means DBS Bridge Bank Limited, a company with the registered number SC356970 whose registered office is Caledonia House, Carnegie Avenue, Dunfermline KY11 8PJ;
“Bridge Bank business” means the property, rights and liabilities transferred from Dunfermline to the Bridge Bank by virtue of paragraph 12 of the Transfer Instrument and any property, rights and liabilities transferred from Dunfermline to the Bridge Bank by virtue of a supplemental property transfer instrument(3);
“Dunfermline” means Dunfermline Building Society, a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986(4) and authorised and regulated by the Financial Services Authority (Reg no: 158765);
“Dunfermline Resolution Account” means the account established in accordance with article 6(1);
“Financial Services Compensation Scheme” means the scheme established under Part 15 of the Financial Services and Markets Act 2000(5);
“financial year” means the twelve months ending with 31st March;
“independent valuer” means the person appointed in accordance with article 5(2);
“Nationwide business” means the property, rights and liabilities transferred from Dunfermline to Nationwide Building Society (incorporated under the Building Societies Act 1986 with registered number 355B) by virtue of paragraph 3 of the Transfer Instrument;
“Transfer Instrument” means the Dunfermline Building Society Property Transfer Instrument 2009(6).
3. The amount of compensation payable to Dunfermline in respect of the Nationwide business is determined as nil.
4. An independent valuer must be appointed to perform the functions specified in—
(a) article 9 (third party compensation);
(b) article 11 (assessment of recoveries by the Financial Services Compensation Scheme);
(c) paragraph 7 of Schedule 1 (certification of costs of the Bank of England or the Treasury to be deducted from the Dunfermline Resolution Account).
5.—(1) The Treasury must—
(a) make arrangements to identify candidates for the office of independent valuer and must publish the details of those arrangements on their website(7);
(b) make arrangements for a panel to appoint the independent valuer (“the Appointment Panel”).
(2) The Appointment Panel shall have the function of selecting and appointing an independent valuer from a list of the candidates identified by the Treasury in accordance with paragraph (1)(a).
(3) The Treasury must ensure that the Appointment Panel comprises no fewer than four members, of which—
(a) one member is the Chief Executive of the Institute of Chartered Accountants in England and Wales, who must be the chair of the Appointment Panel; and
(b) one member is a representative of the Treasury, who shall be a non-voting member of the Appointment Panel.
(4) The independent valuer is to hold and vacate office in accordance with the terms of his or her appointment.
(5) The independent valuer may be removed from office only—
(a) by the Appointment Panel, excluding the member who is a representative of the Treasury, and
(b) on the grounds of incapacity or serious misconduct.
(6) In the event of the death of the independent valuer, or if the independent valuer is removed from office or resigns, a new independent valuer must be appointed.
(7) In the event that a member of the Appointment Panel is unable to sit on the Appointment Panel to perform the function in paragraph (5), the Treasury must appoint another member to replace that member of the first Appointment Panel.
(8) The provisions of this Order apply to the replacement of the independent valuer as to the first independent valuer appointed.
S.I. 2009/319. Back [2]
Where the Bank of England has made a property transfer instrument in accordance with section 11(2) or 12(2) of the Act, the Bank of England may make a supplemental property transfer instrument in exercise of the power conferred by section 42 of the Act. Back [3]
1986 c.53. Back [4]
The Transfer Instrument was made by the Bank of England in exercise of the powers conferred on it by sections 11(2) and 12(2) of the Act (as applied by section 89). The Transfer Instrument is available on the Bank of England’s website: www.bankofengland.co.uk. Back [6]
The website is available at the following address: www.hm-treasury.gov.uk. Back [7]
The Dunfermline Building Society Compensation Scheme, Resolution Fund and Third Party Compensation Order 2009